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SECZ transfers New Africa shares

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THE Securities Commission of Zimbabwe (SECZ) has transferred all stocks that were being held by the now defunct New Africa Securities to the Zimbabwe Stock Exchange (ZSE) and respective investors after it became apparent the brokerage firm would fail to resume operations following its suspension.

Report by Bernard Mpofu Chief Business Reporter

The capital markets regulator yesterday issued a notice informing investors about the latest development.

“All unclaimed and uncollected shares at New Africa Securities have been transferred to ZSE and investors whose shares were still being held by the firm are being advised to contact ZSE for collection of their shares,” reads the notice in part.

New Africa Securities, once one of the biggest brokerage firms on the ZSE based on volumes, in March announced that it would wind up its operations after it failed to meet minimum capital requirements stipulated by the capital markets regulator.

A month later, SECZ placed the firm under suspension for six months pending its plans to meet minimum capital requirements.

Brokerage firms are required to raise $150 000 in liquid capital to be registered.

This week, SECZ suspended Mast Stockbrokers due to the firm’s failure to comply with a directive instructing brokerage firms to register all shares in their nominee accounts into the names of the respective owners by
October 31.

Meanwhile, SECZ has given investors an ultimatum to collect share certificates being held in nominees’ accounts after a probe by the capital markets regulator revealed that several shares were unaccounted for.

The ultimatum followed a SECZ directive on August 29 to all securities dealing firms to register all shares in their nominee accounts into the names of the respective beneficiary owner by October.

SECZ was established through an Act of Parliament to, among other functions, provide high levels of investor protection, reduce systemic risk, regulate trading and deal in securities and register, supervise and regulate securities exchanges.

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